Full Definition
NNN (Triple Net) restaurant leases are common in high-traffic tourism corridors like I-Drive, Kirkman Road, and Sand Lake Road in Orlando. National casual dining chains (Chili's, Olive Garden, Texas Roadhouse) sign 15–20 year NNN leases at $28–45/sf base rent in premium locations. The landlord collects predictable base rent with no operating expense exposure — the tenant pays taxes, insurance, and CAM. Investment-grade credit tenants (publicly traded or franchised national brands) reduce default risk vs. independent operators.
Why It Matters
NNN restaurant properties near Orlando's theme parks offer the passive income of NNN investing with the structural demand support of the tourism economy. Cap rates of 5.5–7% reflect occupancy certainty from tourist traffic — these locations rarely go dark because high-traffic tourist corridors attract replacement tenants quickly.
Related Terms
NNN Lease (Triple Net Lease)
A commercial lease where the tenant pays property taxes, insurance, and maintenance on top of base rent — making the landlord's income almost entirely passive.
Cap Rate (Capitalization Rate)
The ratio of a property's Net Operating Income to its purchase price, expressed as a percentage. The primary metric for comparing commercial real estate investments.